At the Bell
Schwab names head of adviser services * Schwab Institutional, a division of Charles Schwab & Co. in San…
Schwab names head
of adviser services
* Schwab Institutional, a division of Charles Schwab & Co. in San Francisco, has named Deborah Doyle McWhinney president of its unit providing services for investment managers.
The unit offers operational and trading support to about 6,000 independent fee-based investment advisers. Schwab says it is one of the fastest-growing divisions in the company.
Vanguard to offer
Financial Engines
* Financial Engines Inc. in Palo Alto, Calif., will offer its online investment advice to Vanguard Group clients.
Vanguard, the second-largest fund company in the United States, said it would be the first investment management company to offer participants in the employer-sponsored retirement plans it manages free use of Financial Engines’ Investment Advisor service. The service is set to start in the second quarter.
Vanguard, of Malvern, Pa., also says it is the first investment management company to offer the Advisor service on taxable investments for individual retail investors. The service is set to be available later this year.
SEC takes action
in Internet frauds
* The Securities and Exchange Commission announced late last week 11 enforcement actions against 23 companies and individuals that allegedly used the Internet to defraud investors. It is the agency’s fifth nationwide Internet sweep.
The SEC accused the defendants of using the Internet to artificially pump up the value of stocks by more than $300 million and raise $2.5 million in proceeds from investors in the United States and abroad.
They were said to have used “spam” e-mails, message boards, electronic newsletters, websites and hyperlinks, among other means.
In one case, PinkMoney.com Inc., an online publisher in Houston, and controlling shareholder Patrick Greene announced the launch of a website that purportedly could reach a significant part of the $400 million study-aids market. In reality, the company had made only $30 after 14 months of operation, the SEC said.
The company’s share price increased more than 1,000% after the announcement before plunging. The defendants consented to anti-fraud injunctions without admitting or denying the allegation.
Mr. Greene has agreed to pay a $20,000 civil penalty.
Senate panel votes
big cut in SEC fees
* The Senate Banking Committee approved by voice vote Thursday a bill that would reduce fees on securities transactions and new stock issues by $8 billion over the next five years.
The bill, which appears headed for passage this year (InvestmentNews, Feb. 26), would set fees based on the SEC’s budget and reduce them once the budget was met.
The SEC’s budget for fiscal 2001 is $422 million, but $2 billion is expected to be collected from the securities industry under current law.
PanAgora offering
new hedge fund
* PanAgora Asset Management Inc. in Boston has launched a new hedge fund, the PanAgora Structured Market Neutral Strategy. The fund seeks to produce investment results independent of movements in the equity markets.
PanAgora invested its own capital in 1999, generating a net return of 32.71% for 2000.
UBS Warburg adds
top M&A executive
* James M. Neissa has joined UBS Warburg in New York as managing director and co-head of mergers and acquisitions in the Americas.
Mr. Neissa joins the firm from Credit Suisse First Boston’s London office, where he was co-head of European M&A following the firm’s merger with Donaldson Lufkin & Jenrette. He will be based in New York.
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